How to Fix a Credit Score Legally

You may be desperate to fix your credit score when it's low, but the Federal Trade Commission (FTC) warns you must beware of scams. Deceptive companies offer to raise your score for a price. They take your money and do nothing or try illegal tactics that can get you into trouble. Fortunately you can fix your credit score legally on your own by exercising your rights under the federal Fair Credit Reporting Act. Your score will go up if you follow the law and focus on the factors that influence it the most.

Instructions

1

Pay all of your credit accounts and loans by the due date. Thirty percent of your overall score is calculated based on the promptness of your payments, according to FICO, the largest credit score compiler. You will raise your damaged credit score steadily with every on-time payment.

2

Review your Equifax, TransUnion and Experian credit reports. You are entitled to all of them for free every year though the Fair Credit Reporting Act. They must be obtained through AnnualCreditReport.com, the official federally affiliated site. It lets you order them online or through a toll-free phone number.

3

Dispute every negative mistake you find. The law gives you the right to do this and requires credit bureaus to erase the information if it is not confirmed within 30 days of your challenge. The credit bureaus provide online dispute forms, but the FTC recommends sending a detailed letter to each bureau through certified mail and requesting return receipts.

4

Pay as much money as you can toward your credit card accounts. Low balances bring your score up, according to FICO. You won't make much headway paying the minimum amount due because most of the money is applied to the interest. Any extra money brings down the principal balance.

5

Hide your credit cards so you will not use them unless absolutely necessary while fixing your credit score. You'll undo your positive efforts if you keep making charges until your balance reaches the credit limit. Put your cards in a place that is difficult to access and commit to leaving them alone unless there is an emergency.